​​​AUSTIN – The area economy and, by extension, the local office market, continue to reap the benefits of population growth accompanied by coveted gains in the job market, says REOC Austin in its third-quarter 2015 office market report.

More than 57,000 new residents flooded the area between July 2013 and July 2014, and job growth grew by 29,300 jobs over the 12 months ending in September for an annual growth rate of 3.2 percent.

According to REOC’s survey of nearly 43.6 million sf of area office lease space, demand for office space translated into 705,793 sf of positive net absorption in the third quarter, raising the year-to-date net gain to more than 1.3 million sf.

The market closed the third quarter with a citywide vacancy rate of 9.5 percent — stable compared with the previous quarter and up slightly from the 9 percent recorded in the same quarter a year ago.

The downtown submarket remains tight with a current vacancy rate of 7.4 percent and an average rental rate of $40.72 per sf on an annual full-service basis. Rents for top-tier Class-A space in the central business district range up to $55 and average more than $48​​.

“The outlook for the Austin office market remains positive with healthy job gains resulting from a growing business base supporting the demand for office space,” said Kim Gatley, senior vice president and director of research for REOC Austin.

REOC AUSTIN

Austin-Round Rock

Office

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